Michael Saylor, the executive chairman of MicroStrategy, recently appeared on CNBC’s “Squawk on the Street” to discuss various aspects of the company’s operations and strategies, particularly focusing on their Bitcoin holdings and enterprise software business.

Saylor expressed a strong bullish stance on Bitcoin, describing it as a unique digital asset that offers the benefits of property, commodity, and technology investments without their respective risks and liabilities. He emphasized the company’s ongoing commitment to Bitcoin, highlighting their substantial holdings and the intention to continue investing in the cryptocurrency.

Saylor said:

You can never have too much Bitcoin. We’re big Bitcoin bulls.

The conversation touched upon the potential overshadowing of MicroStrategy’s core enterprise software business due to its significant Bitcoin investments. Saylor was enthusiastic about their partnership with Microsoft in AI, noting it as a milestone for incorporating AI into their product line. This move is expected to enhance their business intelligence offerings and accelerate cloud adoption among their customer base.

Saylor pointed out the symbiotic relationship between their business operations and Bitcoin investment strategy. The success of their core business enables further investment in Bitcoin. He anticipates that the potential introduction of a spot Bitcoin ETF would be beneficial, increasing Bitcoin’s adoption and awareness among investors. Saylor believes this will distinguish MicroStrategy’s offering, as they do not charge a fee and use intelligent leverage to generate a tax-deferred Bitcoin premium for investors.

Discussing the upcoming halving event in Bitcoin’s protocol, Saylor explained its significance. This event will reduce the natural selling pressure from Bitcoin miners, as their rewards for mining new blocks will be halved. He anticipates this reduction in supply, coupled with increasing demand (potentially from new financial products like spot Bitcoin ETFs), to be bullish for Bitcoin’s price in the next 12 months.

According to a report by Cointelegraph published earlier today, during his speech at the 2023 Australia Crypto Convention on November 10, Saylor shared his perspective on Bitcoin’s evolution and its future prospects. He reflected on the period from 2020 to 2024, observing Bitcoin’s transformation from what was once considered an “offshore unregulated asset” to becoming an “institutionalized mainstream app.”

Focusing on the near future, Saylor predicted that by the end of 2024, Bitcoin would mature into an “adolescent mainstream asset.” He pointed out significant supply and demand dynamics that are expected to influence Bitcoin’s trajectory in the coming months. Saylor emphasized that the demand for Bitcoin could potentially double, triple, or even increase tenfold in the next year. Concurrently, he noted that the supply of Bitcoin available for sale is anticipated to halve by April, a change from the current balance where approximately one billion dollars of Bitcoin is available from miners each month.

Saylor elaborated on the potential impact of these changes, suggesting that the market could see a shift from a supply and demand balance of around $15 billion in organic demand and $12 billion in organic supply. With one potentially doubling and the other halving, he indicated that such a scenario would likely lead to an upward adjustment in Bitcoin’s price.

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